\u3000\u3000 Shengyi Technology Co.Ltd(600183) (600183)
Event: on January 26, the company released the performance forecast for 2021. It is estimated that the net profit attributable to the parent company will reach 2.62 billion yuan to 2.9 billion yuan in 2021, an increase of 940 million yuan to 1.22 billion yuan compared with the same period of last year, with a year-on-year increase of 56% – 73%. It is estimated that the net profit after deducting non recurring profits and losses will be 2.4 billion yuan to 2.66 billion yuan, an increase of 790 million yuan to 1.05 billion yuan compared with the same period of last year, with a year-on-year increase of 49% – 66%. Non economic sources mainly came from the old factory of Shaanxi Shengyi Technology Co.Ltd(600183) Co., Ltd. three state-owned land use rights were collected and stored by the government, and the related asset disposal generated a net profit of about 186 million yuan.
The performance is under pressure for a short time, and the downstream demand continues to be strong. The median net profit attributable to the parent company in the fourth quarter was 420 million yuan, an increase of 11.4% year-on-year, down from the previous month. The short-term slowdown of the company’s growth is mainly affected by the short-term fluctuation of downstream demand and the rhythm of order confirmation, while the prosperity of the company’s downstream industry remains high. The automotive industry benefits from the wave of “three modernizations”, and the consumption of on-board PCB is expected to increase; The communication industry benefits from 5g construction, and there is a huge demand for PCB consumption in the medium and long term. We believe that due to the prosperity of downstream industries, the short-term fluctuation of performance does not change the medium and long-term growth trend of the company.
The continuous expansion of production capacity has contributed to high performance growth. According to the announcement of the company, in 2021, the high-tech phase II project of Jiangxi Shengyi Technology Co.Ltd(600183) Co., Ltd. and Shaanxi Shengyi Technology Co.Ltd(600183) Co., Ltd., the wholly-owned subsidiaries of the company, was put into operation, the production capacity was released, and the production and sales volume of various products of the company’s copper clad laminate increased significantly compared with the same period of last year. According to the company’s announcement, the company still has Shaanxi Shengyi high tech production expansion phase III project, Dongcheng Plant Phase IV expansion and upgrading project, Changshu Shengyi phase II project and other major projects under construction. As of the third quarter of 2021, the company had a total of 745 million yuan of projects under construction. The continuous expansion of the company’s production capacity is expected to drive the growth of the company’s performance.
Investment suggestion: we estimate that the company’s operating revenue from 2021 to 2023 will be 20.5 billion yuan, 23.7 billion yuan and 26.6 billion yuan, and the net profit will be 2.86 billion yuan, 3.2 billion yuan and 3.73 billion yuan. Give the company 20 times PE in 2022 and give the company the target price of 27.8 yuan. Maintain the “Buy-A” rating.
Risk tip: the optimization of the company’s product structure is less than expected, the downstream demand is less than expected, and the new production capacity is less than expected
